Monday, February 17, 2014

Nepal Telecom posts Rs 5.55 billion net profit in the first half of fiscal year

Nepal Telecom
posted a net profit Rs 5.55 billion in the first half of the current fiscal
year 2013-14.

The profit
is 0.66 per cent more compared to the same period a fiscal year ago.

The Nepse-listed
company’s financial statement for the second quarter of the current fiscal year
published today revealed that its total income stood at Rs 19.69 billion
compared to the last fiscal year's second quarter, when it recorded an income of
Rs 18.43 billion.

According to
the telecom service provider, it has managed to record a growth despite cut-throat
competition and increasing operating cost due to power outage.

The company
has posted increment of 6.86 per cent in income to Rs 19.69 billion, whereas expenditure
also increased to Rs 12.2 billion – due to payment for new projects like WiMax
and additional 10 million GSM lines– of from Rs 10.81 billion last year.

The only
profit making company under the others sub group in the Nepse has also reported
that its expenses also increased in paying frequency fee, contribution to the
Rural Telecommunication Development Fund, operation and maintenance, royalty
and administrative cost, though the expenses for licence fee and interest on
subscribers’ deposit decreased.

Nepal Telecom is planning
to pay Rs 462 million for frequency fee in the current fiscal year, whereas its
operation and maintenance cost increased to Rs 3.75 billion from last year’s
3.1 billion.